Cazaly gets green light on cobalt licences
Diversified minerals explorer and developer Cazaly Resources (ASX: CAZ) has received approval for exploration permits located in both New South Wales and Queensland, opening up the company to the burgeoning cobalt market.
The ASX-listed company has been granted exploration permits for the Bungonia project in New South Wales and Mount Tabor project in Queensland. Both licences cover several prospects with significant historic cobalt mineralisation with little modem exploration conducted to date.
“The grant of these licences gives Cazaly excellent exposure to the burgeoning cobalt market,” said Cazaly’s joint managing director Clive Jones.
“We look forward to expediting access to the ground and to commencing fieldwork as soon as possible with a view towards determining cobalt resources within the project areas.
Jones said pure cobalt mines were a rare breed, making up less than 6 per cent of global cobalt supply and were set to become increasingly important in the highly competitive end-user market.
Metalicity set to confirm Pilgangoora South lithium potential
Australian explorer Metalicity (ASX: MCT) will soon know the lithium potential at its Stannum prospect, within the Pilgangoora South lithium project in Western Australia, after the company wrapped up a first pass wide spaced RC drilling programme.
The eight-hole, 1,600m RC drilling programme was successful at intersecting very thick zones of specific rock formations (albite-rich Lithium-Caesium-Tantalum (“LCT”) type pegmatites) thought to host significant lithium mineralisation.
The most significant intercept was a pegmatite intersected 124m from surface. Thicknesses of the pegmatites intersected so far are considered ‘very significant’ by the company, including the 124m intersect at Tria, 60m at Duus, and 55m at Vun.
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Matthew Gauci, managing director of Metalicity, said while it was a first pass drilling programme, it was encouraging information already.
“The initial first pass drill assessment within the Northern pegmatites at Stannum suggests a very large albite rich LCT type pegmatite system spanning 1km by 300m at surface and up to 124m thick depth from surface,” Gauci said.
“Assays, petrological and geological modelling studies are underway to determine lithium grade and mineralogy, with results to be released as they become available.”
Results of assays, petrological and modelling work will underpin future work including potential infill and extension drilling.
EUM to acquire Wayne McCrae backed Ausmex
WA-based resources company Eumeralla Resources Limited (ASX: EUM) has entered into an agreement to acquire unlisted Australian public company Ausmex Mining Limited, which is backed by veteran mineral explorer Wayne McCrae.
Ausmex was incorporated in June 2016 with the principal objective of acquiring assets to explore for and develop a large IOGC or porphyry deposit funded by low risk gold production resources. It has applied for and been granted EL 5881, a licence covering 980 square kilometres prospective for gold/copper in the Mount Bryan-Red Banks-World’s End area near Burra in South Australia and entered into an agreement to acquire gold/ copper tenements or interests located in Queensland’s Cloncurry region.
Ausmex has a total of 11 security holders (holding Ausmex shares, convertible notes or both). Its largest shareholder is C4 Shares Pty Ltd, which will be entitled to approximately 48.3% of the EUM Shares to be issued to the Ausmex vendors. As a consequence of the Proposed Acquisition, if approved, C4 Shares is expected to hold approximately 27.3% of the listed merged entity.
C4 Shares is controlled by veteran mineral explorer Wayne McCrae who brings more than 40 years’ experience in the Cloncurry Mt Isa mineral field and has detailed knowledge of the Queensland tenements to be acquired by EUM if the proposed acquisition proceeds.
To assist the EUM to re-comply with Chapters 1 and 2 of the Listing Rules and to support its exploration strategy post-completion of the Proposed Acquisition, EUM plans, subject to shareholder approval, to conduct a capital raising to raise at least $3 million.
Following completion of the proposed acquisition, EUM will change its name to “Ausmex Mining Group Limited”.
BC Iron’s Iron Valley royalty undervalued by the market: Foster Stockbroking
Foster Stockbroking has recommended BC Iron (ASX: BCI) as a Trading Buy with a Price Target of $0.32 per share on the back of the mine gate royalty for its Iron Valley operation in the Central Pilbara which the stockbroker believes is being substantially undervalued by the market.
Based on a 62% Fe price of US$70 per tonne and annualised run-rate of 7 million tonnes per annum, Foster estimates cash inflows of $26 million or $6.5 million per quarter.
The broker has forecast a long-term NPV valuation of 27c per share on the royalty based on 7Mtpa run-rate, US73c exchange rate and 62%Fe price of US$60/t.
According to Foster, Iron Valley is forecast to generate ~$30 million on EBITDA at the recent spot price of US$80/t.
Foster also believes BC Iron has a strong balance sheet with a net cash position of approximately $30 million post its recently completed rights issue which raised $24.4 million after costs.
As at 7th December, BC Iron’s share price was trading at 17.5c.